Implementation of Forestry Direct Payment System from Next Month: "28,000 Beneficiaries to Receive an Average Direct Payment of 1.67 Million KRW"

On the 26th, Nam Seong-hyeon, the Administrator of the Korea Forest Service, explained the implementation plan for the forestry direct payment system, which will be enforced starting next month, at the Government Complex Daejeon. Photo by Korea Forest Service

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The "Act on the Operation of Direct Payment System for the Promotion of Public Functions of Forestry and Forests" (hereinafter referred to as the Forestry Direct Payment System) will be fully implemented starting next month on the 1st.

According to the Korea Forest Service on the 26th, the Forestry Direct Payment System was enacted on November 30 last year with the purpose of compensating forestry workers for their low income, rewarding their contribution to enhancing the public functions of forests, supplying high-quality forest products, and increasing forest benefits by promoting forest management.

With the implementation of the Forestry Direct Payment System, the Korea Forest Service expects that about 28,000 forestry workers nationwide will receive an average of 1.67 million KRW per person in direct payments, resulting in a 4.5% increase in forestry household income.

Earlier, the Korea Forest Service received 22,730 applications (covering an area of 61,721 hectares) for the Forestry Direct Payment as of the 19th. Applications are accepted until the 7th of next month.

As of September 19, the status of applications for forestry direct payments. The Korea Forest Service is accepting additional applications for forestry direct payments until the 7th of this month. Provided by the Korea Forest Service

To receive the Forestry Direct Payment, one must be actively engaged in forestry, have a comprehensive income excluding agriculture of less than 37 million KRW, and meet conditions such as residing in rural areas.

The Forestry Direct Payment will be provided to forest lands registered as agricultural management entities by the 30th of this month. However, lands such as converted forest lands, overlapping forest lands with agricultural direct payments, industrial complexes, planned development sites, national and public forests, and lands unsuitable for forest management are excluded.

The payment rate for the Forestry Direct Payment is fixed at 1.2 million KRW for small-scale forestry households. For forest product producers, area-based direct payments and silviculture direct payments apply a regressive rate where the unit price decreases as the standard area of the forest increases.

Example data of payment rates and ranges by type of forestry direct payment. Provided by the Korea Forest Service.

The Korea Forest Service plans to verify the qualifications of forestry workers and compliance with requirements for the submitted applications, finalize the list of recipients, confirm payment amounts, and begin disbursing the Forestry Direct Payments starting in November. The budget allocated for the first payment this year is approximately 51.2 billion KRW.

Management measures to prevent fraudulent claims during the payment process will also be implemented. The Korea Forest Service explained that information about applicants and recipients will be disclosed, and checks will be conducted to ensure that registered details and mandatory compliance requirements are properly fulfilled.

If mandatory compliance requirements are not properly observed during inspections, the payment amount will be reduced by 10% to 40% depending on the number of violations.

In particular, if fraudulent activities are detected during the payment process, offenders will face imprisonment of up to one year or fines of up to 10 million KRW, as well as penalties such as fines, additional sanctions, and registration restrictions.

Nam Sung-hyun, Administrator of the Korea Forest Service, stated, "We will listen to field voices regarding the implementation of the Forestry Direct Payment System to identify and improve any issues, ensuring that more forestry workers can benefit. We will strive to make the Forestry Direct Payment System a foundation for nurturing and preserving forests and woodlands, while also serving as a stepping stone that benefits both forestry workers and the public."